we have to hug our kids are each other? planning a chat with a loved one or not a loved one? i bet to a lot of lists are changing for those that matter. wouldn't it be nice if the hug horse stopping to talk was the only thing on the list? the only thing? to a police

officer. we head down to key west florida for an incredible example of@ government over reached welcome to "the williseport." ♪ hello, everybody. i'm ger willis. time runni out for washington to get its act together to keep us from falling out the scal clef. president obama and the speaker sitting down at the white house today after the speaker offered his latest proposal which sources say includes tax hikes on millionaires, anchoring several conservative organizations. it turns out his concessions are not good enough for the president. the white house making it clear the only balanced plan on the table is the presidents. where do we stand? with more on this, president of the american action forum and former ceo director. welcome to this show. always great to see you. what do you ke of this idea

at this is not balanced enough rest? >> look, the only thing the president has put out publicly was the initial requst that there be over one half trilion and higher taxes, and that would have net deficit reduction which means there was nothing in the spending side, and that is not balanced by any measure. since then, most of the talks have gone underground. don't generally notice on the table. you know, we have seen from the other side is a real attempt to try to out compromise. we have seen the speaker put additional revenue on the table. we have seen him but potentially a debt ceiling freeze the marginal tax rate increases. these are all things that the president has asked for. gerri: let's break it down a little bit. you said tax hikes obviously on millionaires. a big changthe repblicans. to break it down, 1 trilon in cats, a chilean in revenue. obviously he is changing his position pretty dramatical.

can they come to a grand? at this point earlier his proposal, as we just described, was supposed to be break through. democrats saying, we should pay attention to this. not now. what happened? >> well, i'm not sure. we have tax increases are bad, d the fact that have a fiscal cliff is testament to that. we don't want everyone to pay higher taxes. he has tried to minimize the impact of taxes or ask for good things, which is entitlement reform that we desperately need to get the debt reduction. so far he cannot the president to yes, whh raises the question, is there anything that would get the presidency as? and if there is, hy can't the president just on said this why want. he has never said, what this. gerri: what is interesting, he had a similar problem on the other side. the speaker the house, very difficult for him to get the republicans togther, and you have to wonder, are they going

to stand behind them ultimately if he does try to continue to moveoward the president. can he keep the party together? >> i think it is an open queson. he has made a ver principled attempts to keep his offers close to it is preferred policies. openly honesabout the fact it is not like everything. geing a deal is better than subjective as to a self-inflicted recession, and it is irresponsible thing to do. i would hope the white house would do it the same way. more importantly, if some sort of deais sttuck on he numbers above party we will lookt in now regard. gerri: the stocock but that. is it? i hear a lot of democrats say -- there is no request. you''e on the fox hannel. they're expecting a deal. no one would be so irrational as

to raise taxes. we know we saw a big drop in consumer confidence, and it had durable economic impact. already we have seen consumer confidence dropped in december. my fear, we go over from a financial confidences shattered. gerri: let's work out that. the dominoes the fall. some people stop spending. a pullback. companies pull back even more. the housing market goes into the tank. unemployment goes up. the following down as ofthe hardest of with the point. how long? >> i don't know. if -- it face every time they get ba news out of washington. they can be very powerful. we have a recession that was starting in the financial markets demand that to not have big spending cuts and tax increases. we are laboring in an additional

piece of bad news for the economy. my concn is that once the dominant sta to fall, they are not easy to put back together and, quite frankly, if they cannot get deal on the go over the fiscal cliff, why is it that people believe they can come back in a week, get a deal, and fix it? i don't understand that. gerri: a lot of people frustrated. on january 4th we're going to starreaping the reward of this as people get their first paychecks in that new year. a 25-$130 decline in a paycheck. it does not sound like much, but in this economy every single penny counts. >> i think you get that right on the nose when you said that, you know, it would go down, which is true. growing in probably 1%, anwe would take off the table the one glimmer of hope, the husing market recovery. we have gone to the point where it looks likethat would be at 2013 event and to shatter that is a setback. gerri: great to have you on the

show. you have to come back soon. >> thank you. gerri: not only is the president doubling down on raising taxes for those making over 250,000, he is doubling down on green energy with taxpayer green on 68 million plan to help build off-shore wind farms. monism a republican congresswoman musher chairman of the energy and commerce commiee. great to see you and have you on ththe show. >> good to see you. gerri: i look at this, and i'm kind of shocked about hat the administration is proposing here with wind and eergy. wh is your reaction? 168 million. siyear plan. not a ton of money, but while we going next? >> well, and you know, the first thing i said is, where they getting this money? right now, my staff and the committee staff is trying to figure out. it does not appear to be in the stimulus. so we're trying to figure out where they're trying to get this $4 million to give each of seven companies to see who is going to

compete to try to make something viable. the problem is, you have got wind energy in -- wind energy entities out there that have been working fora decade and connect to the point of commercial viability. we are saying, look, don't keep throwing this money after projects that are not ready to be commercially viable. gei: you have to ask big questions about the technology here, congresswoman. >> correct. gerri: it seems to me, it is less than energy-efficient. the bang for the buck to you get is just not impressive at all. meanwhile, you are reading the entire landscape. is this an idea that you could ever get behind? >> no. and you get on to things. it ruins the landscape, and then you don't get much for the dollar they disband. it is the st expensive form of energy. of course, we have homegrown energy. when you're talking about all

whalen gas and coal and nuclear power generation. those are homegrown. there are affordable source of energy. also, on the landscape, wehave heard in committee and through the real book report, if you wanted 54,000 megawatts of wind energy generated, that would take 15,000 turbine's 10-20 miles off the eastern seaboard. it would need to cover and scope of 3000 miles. and the coastline from maine to florida is 1300 miles. so this -- this is just not going to work. we also know that whether it is ryelanbordello where it or michigan or massachusetts, not any o these project have worked. gerri: hang on. hang on. gasol feels to me like solyndra all over again. >> uris ashley right. gerri: i want to share some

numbers that i think are important with our viewers that blew me away. wind, expensive. getting five times more the brakes the natural gas. two and half times more expensive than onshore wind. at the end of the day, get this to go. the government is having to pony of so much more money that it even gives the oil industry. and, ou know,hat pople say what the oil industry and government support. it is unlimited. twelve times greater than oral and gas subsidies. if youan find a viable green energy the sponsor, would you be willing to put that kind of money up? >> well, if you can find something, yes. let's talk about what is working the problem is, right now government is picking winners and losers, and you just talked about thatwith wind energy, with the wind energy production credit. you know, all whalen aghast as did a production credit, but one of you just say wind, solar,

biomass, ethanol, whatever, you're going to get the same production. so after you invest your oney than you're going to get that, but this business of tings like the doe loan guarantee program that taking taxpayer funds, funneling it intto these companies that cannot reach commercial viability on their own after decades of trying to mow we are too broke. to broke. gerri: that brings me to my finapoint. how do we afford this? where is the bottom as pocket the rear gate and into right now find he money to pay for this. are we having a bigdebate right now over how to find this huge debt that we ave built up? and reid can iust on cme sensibility about our money and maging in a way it makes sense in washington. gerri: that is exactly right. that is why when i first saw

this i turned to my staff and said, where are they getting the money for this jack we have ll these loan guarantee programs . now they are going to go spin out something on land. they're going to $2 million out the door immediately, another $168 million over ur years. where are they getting this money? there will be amendments othe floor to block doe putting his money in said this kindof r&d. it has no place. we cannot afford it. if a private company wants to do it, good luck. gerri: out of room with that either. i'm afraid we're going to have leave it there. thank you so much. >> thank you. gerri: more to come. six weeks after the destructive

storm sandy had come home an business owners are still waiting for insurance companies to act. tips and how to get a quick selement. the proof is in the pudding. how to tax hikes on their rick backfired in britain. we will politicians take note?

♪ gerri: you remember will sutton? he was the depression-era bank robber who held upabout 100 banks over four years. wh asked wh, he famously said, because that is where the money is. i thght o him as i was listening to reporting in the fisc cliff. the prdential point man saying higher taxes on the wealth must be part of any resolution with republicans.

presumably the white house team thinks the wealthy or the money is. i have news for you, that strategy may not work. consider britain. after they announced a plan to levy a 50 percent income tax on people earning a million pounds are more, the number of books in that category gets decidedly smaller. check out these numbers. the number of millionaire tax filers in 2009, 16,000. by 2010 that number had dropped to 6,000. that government pinned its hopes on raising new revenues, with the law of unintended consequences took hold. suddenly 60 percent fewer millionaires. heres the impact on government coffers. a lot has changed. britiih millionaire's contributed 13 and a half billion pounds or 9% of a total tax liability of all taxpayers the year. but in a lot changed. amelya air taxes raised six and a half billion pounds or less

than 4 percent and have -- for a half percent of the total tax liabilities. so what happens? then dozens of millionaires leave the country? what the people move to get a lower benefit? did they all get stung by a weak economy? any or all of thisould have happened, but the story is a warning signal for politicians in the u.s. if you believe you could have financed contamination on the back of the wealthy, think again. it is not that eas. we need better operating of a fair tax system in which everyone has skin in the game rather than trying to find out where the money is. by the way, how much money do you think and slick willie get away with in 40 years of robbing banks? just $2 million. at thought it was more. that's what i think. now we want to know what you think. coming in the mail. gerri@foxbusiness.com. >> coming up on "the willis report," hurricane sandy slammed into the east coast over one

month ago. why are victims still waiting on a? and what is fema doing with the cash? the president of ericsson insurance advisers ways in next. and guess which state the highest paid truper lives in? queue will not believe how much some are milking taxpayers. we will have the averages tails later. also, what has nine lines and six toes? find out why their government is cracking down on these level for balls. we are on the case next on "the willis report." ♪ [ male announcer ] how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy.

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gerri: sandy will go down in history as one of the most costly hurrican of all

♪ gerri: insurance issues continued to crop up after super storm scene the ravaged the east coast a little more than a mon ago. reporting close a million losses among 150,000 business losses. if you have a settlement, there are a few crucial things you need to do first. joining me now, president of ericsson insuranceadvisers. welcome back to the show. great to have you here. when you talk to people, probably in an emtional state and probably not well prepared to deal with this kind of problem. what do you tell them about getting a quick resolution? what is step number one? >> well, step number one in any claim is reported to your agent or the company, and hopefully he will have an agent you can rely and l.p. through the process because of time is more important than to have that agent.

gerri: you need to get it reportedo my but not everyone has an agent. the biggest -- companies that deal virtually. what to those people do? >> , the company. get claim number and contact number because especially with this claim where we-- a million homeowners, you need to be proactive and call the company. the adjuster was sitting around handling the claims, now althe senate's 2,000. gerri:ost people have already filed claims, but there is another storm, another fire, some kind of damage that pele have to be pro-active in this case to get the right thing done. you also say, protect your property. >> you actually a sudden 2,000. have a duty under the policy to do whatever you need to do to prevent furtr loss. so if you cannot live in your

house and need housing, go find it. yourolicy will protect you. don't wait for the insurance company to tell you what to do. did this scene stabilized and then we can work on the claim. gerri: i can stay at that time mahal. i need to exercise some caution. >> absolutely. you need to get yourself and your family safe. gerri: contact vendors, and i suose to find the data will fix my hou? >> you are. they will help you find vendors, but in a case like sandy where we have a million losses, go get in line. find a contractor to help you get an estimate. gerri: this is not your specialty, but people are complaining about people trying to rip them off. they're posing as contractors. how did you never get that t and make sure you're not getting taking? >> supply and deand. if you're down in the barrier island of new jersey in need

someone to spend your house for more than there are only ten firms that do it in a couple thousand people that needed, it will be tough. gerri: organized plan for the adjuster. >> absolutely. right now handling thousands of claims. what claim will they pick first? the one that looks like it is a pretty book report. get everything together, make their job easier and bill their report. this is a ry stressful tim. the easier y make their life, the faster it will go. gerri: explained his role. >> they work for the insurance company, and they are to mnage the claim, pay t claim, analyze the plant. they wil go through all of the receipts that you present and make sure they let fair and eventually they will be the ones the right to check. gerri: bill their relationship with home? >> the adjuster. it is going to show. gerri: give him some offee.

>> nothing wrong with brown nosing. [laughter] gerri: fantastic. those famous ords. >> absolutely. happy new year. merry chrtmas. up next, another case of waste, fraud commanded piece. wait until you hear how much one is raking in. cannot figure what to get the special somebody? coming up, the top five guest not to give any woman. ♪

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♪ gerri: when it comes to waste, fraud, and abuse california takes the cake with its outrageous, salaries.

according to one report, a california highway patrol chief retired lst year as the best paid officer ever raking in nearly $4,804,000 in salary, pension, and other benefits. he should be running a public company. the report finds union benefits allow many troopers to double their annual earnings in retire as young as 50. head. welcome back to the how. great to have you here. injure you being on the show. this story really makes me mad. let me brak down the salary. unbelievable. a lump-sum payment, accrued leave and vacation. a hundred and $78,000. nearly 100 -- how does anybody think this could possibly be making sense for a state that is going into the red, bankruptcy?

>> this is exaclywhy. this is the way the state governmentuns things. they knew they were playing with someone else's money, and not just the taxpayers. when you're giving away huge pensions, you' giving away the probably are not even all the nafta vote yet. it has to do with the clout of a government employee unions. scott walker spent a lot of time battling and as johnson, but when you have geg davis as the governor, he was not. 90 percent of their salary is what they did as a pension for a lot of these guys. gerri: who in their right mind things you can pay that out? that me show you some examples year becauseou brought up an important point, the role of public to the public sector unions, critically important. when you look across the country at the highest paid cops and the

country, you can see the difference. california, that is what they earn. new york, 183. the state's, falls back to 137. right to work state, no unions. 120,000 which seems to be more in line with what might be more realistic for somebody in that job. what do you predict will happen with these candidates policies? >> part of the problem is that people signed up to do tese jobs for a man expecting some of the bay. really bad deals. there is a limit to how much it can be taken away. he will fix it. they are doing battle with the government employee unions, and so and a lot of places it getting fixed. hopefully going for everyone not have these liabilities. bellamy look back at what they did one in two decades ago,

we're literally paying the price . they're going insolvent. they can't afford. gerri: the problem is legally is hard to trump those agreements because, you know, they are legal and binding contracts. how can yoo get around them? >> sometimes within the existing union they can do initiation. if the contract was negotiated not in good faith, conceived -- conceivably they could be voided this would be an equivalent to that, but a lot of these -- the money will just be paid out which is the way we're going to have to do it. can you sue for negotiating these contracts? one of the people that convinced him was not just the government union. the california public employees retirement system is kind of a government agency, kind of a hedge fund. they wanted more money. we promised the returns will be big enough. you have big pots of money,

financial, private seector players who also lobbied for and benefited from these overly nerous pension programs. gerri: everyone was on the right side of the boat. the salaries went straight to the sky, and in some cases tese data going into retirement at age 50 doubli what they make. the people who hired them are making much, much less which is the tragedy. when you're making when your employer, watch out. gerri: and the taxpayers are the employers. we get left out of this because the insiders circle of the union and the hedge funds and the politicians' campaign, the politicians that benefit from it. taxpayers are on the outside of the circle. gerri: that is for sure. thanks for cominon tonight. have a great holiday. merry christmas. come back in the new year. >> merry christmas. gerri: merry christmas. eight days left. no, i'm not talking about the fiscal cliff. i'm giving you a countwn to

buying that perfect gift for the woman alive. instead of telling you what to give, with the help of many we will tell you what not to give. cash. as much as women love money, a gift will not go over well of cash. considered dauntless, but maybe not that bad. i don't know if it is -- i might go for that. diet products. a bad idea. to a guy it is a great idea because the woman is always talking aboutwanting to drop a few pounds. the woman takes it as, your fat. which brings me to number three. flows can have three differe outcomes. to begin cief defendetalk to small and she feels bad to my three, ugly and she is appalled and things you have bad taste. all bad. number two, anything that cannot be exchanged. it is the matter how expensive something is. if she doesn't lke she will want to exchange it. she can't, there will be held to pay. the number one thing, an

appliance that she did not ask for. vacuum cleaners, snow blowers. it's just not romantic. however, a couple of years ago i asked might catch it -- husband for a kitchen aid mixer, and i love that thing. all right. if you wanted see some other gift-giving don'ts, go to our facebook page. you know, don't worry. tomorrow we will tell the women what not to give, and we will leave of cash. now we want to know what you think. who gives a better gift? women or men? log on to gerriwillis.com, on the right hand side of the screen domino's share results of the end of the show. coming in, homeowners are bracing for the fiscal clif. should you head for the hills? next, a ridiculous example of government over each. a museum at the home of are ernest hemingway is being told they will face fines unless they get their kity litter under control. ♪

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♪ gerri: we talk a lot about the ever expanding role of government. here is the story that takes the cake. the famous cast of the hemingway meet -- katz of the hanoi museum are subject federal oversight. thanks to an appellate court rung, the museum must abide by the same laws regulating zoos are circuses. joining me now, hat ceo. thank you for coming on the show. appriate. i just don't getthis. how is it hat the federal government thinks that it should have oversight over a museum?

>> it appears that an enforcement agent visited the property and, based on our interpretation of busing simi -- exhibiting the cats, e fell under those guidelines. since that time from we have been trying to comply with licensor requests and obtning the necessary licenses. gerri: tell us a little bit because they are very secial. and also, tell us how many of there are. >> we have 44 cats that occupy our 1 acre site at the museum and studio of ernest hemingway has. their room the property along those lines, but they are unique in that the historical link between their ship -- shippers of the eastern born. they have multi toes. gerri: we saw a picture, and you

can see very clearlin any kind of weird paw, oversized. extra fingers, not know what you call them, but you can see i. so inspectors come. i understand the usda visits. how many times have they been to the museum? what to they do on-site? >> this process began in 2003. toy -- last week was finally resolved. we did come to a mutual agreement about three and a half years ago that allowed us to take the usda to a court to a dispute in there regulatory authority over our museum. gerri: tell me, how many laws are you said to be violating there? >> again, the process wa that we need to get them licensed. through that five-year process, they kept moving the target necessary for us tough yet our

cats licensed. finally, we were able to up meet with that assistance secretary of the department of agriculture and come to a negotiated agreement so that we could finally take the usda to court and ispute their right to regulate us since we are regulated as a local business. gerri: saying you are a zoo, and you know, i don't think they take a lot of minutes, do they? >> no. what they did was, they said that since we are on the internet and our brochure has the cats on it, we are in interstate commerce. so therefore we need to be licensed because ernest hemingway and this, the paula bat-to-bat haae a historical linkage. we talk about that historical linkage while we give our visitors the tour, ann the u.s.

government, usda agency said that that met the criteria of an exhibitor which falls under that zoo and circus citeria. gerri: i want to read something from t 11th circuit court of appeals. the exhibion is nternal to the commercial purpose and does -- does it as interstate commerce. for these reasons congress has the power to regulate the museum in the ex d in the animal welfare act. this is the craiest thing. ally and a world think government even cares that your museum exists is beyond me. do you think you're going to be a will to turn his back? >> you know, i think the only thing that we have available to us now is legislative -- gerri: remedy. >> opportunities. we will try to meet with our senator long as lines, but you're exactly right. this is so far reaching.

if somebody has a complaint with the heal and care of our animals, which they don't demand i have 300-600 people on a daily basis coming to your, if they did, they can call our local authority, animal control, and ey would come out and handle the situation or circumstance that was there. they would get with our local veterinarian, our mobile veterinarian andut if there really is a problem that exists. but to havethe federal government -- gerri: they look pretty healthy. >>o have the federal government coming in and selling is that we need to put up fencing to contain the animals because they should not be allowed to up from outside of the property, basically put them on leases is what they want t require. gerri: they sure know how to be a killjoy. in telling you. thank you for coming on tonight. if you have some change commence

let us know. tell the show and who will bring you back to talk about it. >> we hope to. gerri: happy holidays. >> thank you again. gerri: you'r welcome. bye-bye. now we want to bring you the latest on a story that we talked about last week. it lks like there won't be a broadway strike this holiday season. a union representinhundreds of theater cleaners, borders, an elevator operators, and bathroom attendance have reached a tentative labor agreement. it must be ratified by the theater workers who are seeking pay increases and better health ca benefits. the current contract ends december 30th. still to come, my "2 cents more" on a celebrity shake-up in france. you will want to hear about that. the fiscal cliff takes aim at the housing market. will the root -- recovery disappear if we go over the edge? ♪

gerri: over the past year, house prices jumping significantly in major u.s. cities.

♪ gerri: well, with the fiscal cliff deadline fast approaching, my next guest says, falling of the fiscal cliff will have a devastating effect on the nation's housing market. consumer confidence would get hurt first which would impact demand. here with more, execuve vice president of carrington mortgage holdings. welcome back to the show. you say, the impact of going over the fscal cliff could be devastating. how so? >> the first casualty, as you mentioned, will be consumer confidence, and a l of what

has built the housing market back up is increased demand. absent that demand, and that will be the first thing to get hit with consumer confidence, we start to see prices often which would sort of lead-housing market back into the pits. right after that, most economists believe that killing of a cliff will lead to a recession and spike and unemployment, and those two things are pretty much kryptonite when it comes to housing. could led housing back int the down cycle pretty quickly. gerri: we have seen some positive moves in the housing market, espeially in some markets places that are really moving into recovery pretty strongly. is a your expectation that consumers generally are going to sit on their hands until we figure out the fiscal cliff? i have to think, for example, that right now is not at great time to put your house and the market. >> it depends on your marke if you're in a place like a phoenix from prices have goe up, it probably is a pretty good time. parts of california that have let let -- less than one month's

worth of inventory to sell. the supply and demand balance really has started the housing market going back up again. if you see people that are suddenly afraid they will not be able to hang on to their jobs, high numbers of people being employed, even if you take a look at the hit disposable income that is likely to happen if we go over the cliff, that is a difference in trouble deciding to buy a house or not even being able to afford to qualify for mortgages. gerri: let's talk about to impart an impact to people who might not be thinking. the expiration of the debt forgiveness act, and there are talking about mortgage interest deductions. let's start with debt forgivens expiring on december 31st which could impact sure sells big time, have a big impact on the recovery of the market. what would appen, if this l sunsets, which it probably will? >> most people don't understand that in a short sale, the lender for gives a certain amount debt. traditionally, the irs treats forgiven debt as regular income, so you're going to get taxed at

the regular tax rate, andwe're talking about the fiscal cliff, so everyone's rates are going up. someone who gets a hundred thousand dollars for given on a debt to a mortgage to do a short sale of all the sudden has to pay taxes on that. the other browers that it affected, peple with principal balance reductions on loan modifications which the government is pushing some not, so it is a real potential mass. gerri: of course, mortgage interest which could go away. i don't think that cold have a big impact. the number of people who tell me that they buy a house because they want the deduction in part. do you think that will have a big impact as well? is that something you are concerned about? >> absolutely. a short-term sort of psychological effect, but in a long term what you're really looking at is the probability that the upper end of the market and upper middle part of the market, you will see prices are to come down because absent the tax deduction a lot of the people that would buy those houses will not appeal to afford the monthly payments.

there is the short-term implication of these things, and longer-term implications. gerri: next time we have you won i hope we have happier news. thank you. appreciated. a great holiday. >> youtube. gerri: thanks. we'll be right back. ♪ [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person, with dedicated support teams at or 500 branches nationwide. so when you call or visit, you can ask for a name you know. becau personal service starts with a real person. [ rodger ] at scotade, seven dollar trades are just the start. our support teams are nearb ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.

>> earlier, we told you the worst gifts for women, and tomorrow, the worst for fellows. we wanted to know, who gives the best gifts? women or men? here's what you are posting on facebook. check it out. look at that. angie says not because i'm a woman, but i think women put more thought into it, plan more, d procrastinate. yes, they do. another, women, as a man, i'm cluesless for gift ideas, part of our dna makeup. nice dodge, right? 71% said women, and 29% said men. i don't know if that means men

are honest or we have more women viewers. here's e-mails, don from north carolina writes the "bipartisan compromise means republicans fold like a cheap suit. no wonder independents are growing and impossible to believe in the pnciples to which the republican party pays associate with spineless republicans." ouch, don, okay. spend eight hours a day, five days a week in the respective chambers, avoid the press, and when they reach agreement on a compromise, jointly announce e results. this is what they were elected to do. this is what responsible adults would do. this is not what they are capable of doing. well, you're right about that. steve from arizona says, "i think the republicans are taking the wrong approach. they should give into the president, wait four years to run the same campaign president obama ran. their plan did not work." finally, tonight, more unintended consequences of tax hikes. one of france's best known actor here is